Installment Agreement

When full payment is not possible — a structured, strategically negotiated payment arrangement can be the most powerful tool available to protect what you have built.

For those facing significant federal or state tax liability, an installment agreement is often the most practical path to resolution — one that stops enforced collection, protects assets, and establishes a structured framework for addressing the debt on terms that reflect the reality of your financial situation rather than the IRS’s preferred outcome.

What Is an Installment Agreement?

An installment agreement is a formal arrangement between a taxpayer and the IRS — or a state tax authority — that allows the outstanding tax liability to be paid over time through structured monthly payments.

Once an installment agreement is in place, the IRS is generally prohibited from taking enforced collection action — no bank levies, no wage garnishments, no asset seizures — as long as the taxpayer remains compliant with the terms of the agreement and all current tax obligations.

The Financial Disclosure — Where Representation Matters

The IRS uses detailed financial disclosures (Forms 433-A or 433-B) to calculate what it believes you can afford to pay. Left unchallenged, this formula almost always produces a payment amount higher than what a taxpayer can realistically sustain.

At Blackridge Tax, we ensure that every allowable expense is properly documented and presented. We navigate the IRS’s national and local expense standards to identify every circumstance that supports a deviation from their standard formulas — medical treatment, dependents, and professional obligations — ensuring your agreement is sustainable for the long term.

Protecting Secured Assets

Without proper representation, a taxpayer may find themselves pressured into an agreement that effectively requires selling assets they need to maintain their household or business.

We advocate aggressively for payment terms that preserve our clients’ ability to maintain essential assets. An installment agreement should create a path forward — not dismantle the financial foundation that makes payment possible in the first place.

Types of Installment Agreements

Streamlined Installment Agreements: Allows for payment plans without detailed financial statements, provided the liability is satisfied within the remaining statute period.
Financially Disclosed Installment Agreements: Required for larger liabilities. Our advocacy ensures the resulting payment is based on realistic living expenses, not an arbitrary formula.
Partial Pay Installment Agreements (PPIA): A strategic resolution where monthly payments do not fully satisfy the liability before the statute expires, effectively extinguishing a portion of the debt.

State Installment Agreements — California

California’s state tax authorities — the FTB, EDD, and CDTFA — have distinct eligibility requirements and standards. For clients facing both federal and state liabilities, we coordinate these strategies simultaneously so the combined obligations remain financially sustainable.

The Blackridge Standard

Blackridge Tax negotiates installment agreements for clients facing $50,000 or more in tax liability. Our team includes a Board Certified Tax Specialist, attorneys licensed in six states and before the U.S. Tax Court, a CPA, and an Enrolled Agent.

A payment plan negotiated by Blackridge Tax is the result of comprehensive financial analysis and an advocacy process designed to produce the lowest sustainable payment amount the IRS will accept.

Next Steps

Stop Enforced Collection

An installment agreement offers immediate protection from levies and seizures. Secure a sustainable arrangement today.